Which of the following statements is FALSE? a. There is a cause-and-effect relationship between the cost driver and the amount of cost. b. Over the long run all costs have cost drivers. c. Volume

Q: Which of the following is true about the changes in fixed cost? An increase in production will…

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the…

Q: Which of the following statements is correct: A. total fixed cost remain constant while variable…

A: Fixed Costs: Total Fixed cost remains constant at all the level of activities. Fixed cost per unit…

Q: In applying the high-low method of cost estimation to mixed costs, how is the total fixed cost…

A: Mixed cost also called the semi variable cost . Mixed cost contains both fixed and variable cost .…

Q: What is characteristic of variable costs within the relevant range?   A. Decrease in total as as…

A: Variable costs within the relevant range has following characteristics :- Total variable cost…

Q: 7. Which of the following is an example of a mixed cost? a) Direct labor cost b) Rent expense c) Raw…

A: Mixed cost is a cost combination of variable and fixed costs. Mixed cost accounting fixed cost and…

Q: When output volume increases, do fixed costs per unit increase, decrease, or stay the same within…

A: Fixed Costs:   These are the costs that remain constant in total dollar amount irrespective to the…

Q: A cost which changes in proportion to changes in volume of activity is called a: *       a. fixed…

A: Costs are the expenses or amounts incurred in the business for manufacturing or selling of products.…

Q: Each incorrect answer cancels out each correcr one. Indicate which of the following statements are…

A: 1. Indirect costs are those factors whose increase or decrease is not related to changes in the…

Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one: A.…

A: Fixed costs are those costs which do not change with change in level of activity. For example,…

Q: Which of the following statements are true? Multiple select question. Within the relevant range…

A: The objective of the question is to identify the correct statements about fixed costs in the context…

Q: Costs treated as product costs under direct costing are:   A. Variable production cost only B. All…

A: Direct Costing: Costs related to  production of the product only  are assigned to the product and…

Q: Why might it be misleading to show the fixed costs on a per unit basis?

A: Fixed Costs are those costs that do not change in aggregate in relation to the level of production…

Q: 2. The following total cost graphs indicate which type of cost behavior? A. VARIABLE COST B. FIXED…

A: Cost behavior refers to how costs change as the level of activity or output changes within a…

Q: Which of the following cost behaviors cannot be accurately represented by a single straight line? A.…

A: Cost behaviours break down into four expense classifications as follows…

Q: Which of the following statements is true of ABC systems? A) ABC systems are time-driven cost…

A: Activity-based costing (ABC) is a method of assigning overhead based on activities, which are…

Q: Cost-Volume-Profit graph contains an "Area of Loss" and an "Area of Profitability". Which of the…

A: Meaning of Cost Volume-profit graph Cost Volume profit graph is also shortly called as CVP graph. It…

Q: Within the relevant range, the change in activity level will result in   a. A change in both of…

A: Cost can be classified into two categories such as fixed cost and variable cost. The fixed cost…

Q: Variable costs are costs that:    A.vary inversely proportional with changes in activity B.Remain…

A: Variable cost :  Variable costs are constant per unit and change in total while fixed costs always…

Q: Which of the following best describes a fixed cost?   A. It may only change in total when such…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: The direct costs of materials that change with the number of units produced is an example of a fixed…

A: False, the direct cost of materials is not an example of fixed production cost because it is a…

Q: In describing the cost formula equation Y = a + bX, which of the following statements is NOT…

A: Cost formula equation shows the combination or mixture of fixed costs and variable costs for…